The Mar10 WTI contract has completed a (slouchy elongated) Head & Shoulder formation on the daily chart. The risk implied in this trading pattern is bearish, if it is followed through. A break below 7400 suggests a remarkable move lower, targeting 6400 region. To negate the bearish view, a break and close above 7600 would be needed.Tuesday, January 26, 2010
Technical View
The Mar10 WTI contract has completed a (slouchy elongated) Head & Shoulder formation on the daily chart. The risk implied in this trading pattern is bearish, if it is followed through. A break below 7400 suggests a remarkable move lower, targeting 6400 region. To negate the bearish view, a break and close above 7600 would be needed.